The above figure shows the Lorenz curves for four different countries. Which of the following statements is FALSE?
A) Country A has an income distribution that is not perfectly equal.
B) Country D's income distribution is the most unequal of the four countries.
C) The distribution of income is more unequal in country A than in country B.
D) The distribution of income is more unequal in country D than in country C.
Ques. 2Joe is contemplating a job where, with probability 0.6, he will make 100,000 and with probability 0.4 he will make 30,000. What is Joe's expected income from taking the job?
A) 12,000
B) 60,000
C) 72,000
D) 90,000
Ques. 3If the official settlements balance is zero, a current account surplus must equal the capital account deficit. Is the previous statement correct or incorrect? Briefly explain your answer.
What will be an ideal response?
Ques. 4In August 2007, Sun Trust Bank has 83 million in loans and 114 million in M1 deposits. If Sun Trust is holding 4 million in reserves, the bank's reserve ratio is
A) 31 million.
B) 4.8 percent
C) 3.5 percent.
D) 72.8 percent.
Ques. 5The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive, what government policy might move the market closer to efficiency?
A) The government could subsidize the production of steel.
B) The government could tax the production of steel.
C) The government could issue vouchers to steel consumers.
D) None of the above answers is correct.
Ques. 6A firm's value of marginal product of labor curve
A) is flatter than its demand for labor curve.
B) is steeper than its demand for labor curve.
C) is its demand for labor curve.
D) bends backward.